Thinking about rebalancing the gold down, anyone else?

Mark Adams

Back to forum

📊 Economy

Thinking about rebalancing the gold down, anyone else?

mark_adams👑Elite (1m-5m)

about 2 months ago

Key Takeaways

•Okay, so I’ve been heavily weighted in physical gold for the last 18 months, maybe almost two years now.
•I locked in some pretty decent gains on a good portion of it too, which has been nice.
•I know a lot of you guys here are probably in a similar boat, especially the ones who got in early.

Download the free rollover checklist

Okay, so I’ve been heavily weighted in physical gold for the last 18 months, maybe almost two years now. My allocation is sitting at around 15%, which for a portfolio my size ($3M HWM) is a pretty significant chunk – we're talking about a cool $450k in the shiny stuff. I started ramping it up when inflation started looking not-so-transitory, and honestly, it’s done its job shielding the portfolio from some of the broader market volatility. I locked in some pretty decent gains on a good portion of it too, which has been nice. I know a lot of you guys here are probably in a similar boat, especially the ones who got in early.

My fund holdings have been performing really well recently, as I'm sure most of yours have too. The equities side of my personal portfolio is also looking strong. With macro indicators still a bit hazy, but certainly less alarming than they were a year ago, I'm starting to seriously consider rebalancing the gold allocation back down to something more conservative, maybe 7-8%. That would free up a decent amount of capital, north of $200k, to deploy into some other opportunities I'm seeing, particularly in some specialized tech funds my firm has been eyeing, and potentially some real estate plays in the Greenwich area – though frankly, that market feels a bit... frothy.

The question is, is now the right time to trim? Part of me thinks gold still has legs given ongoing geopolitical uncertainties and the general global debt picture. But another part thinks I’ve ridden this wave well, and it’s prudent to lock in some profits and diversify. What are you all thinking about your gold positions right now? Are you holding steady, adding, or, like me, contemplating a reduction? Especially those of you with significant physical holdings – any thoughts on when to pull the trigger?

I'm torn between adhering to my strict rebalancing rules and the gut feeling that maybe this isn't the peak. Would love to hear some perspectives, particularly from those of you managing similar-sized personal books.

204

7 comments

The Fed can't print gold — that's the point

Learn why retirees are moving savings into physical metals. Free investor kit.

Under $100k? Compare options →

709 people viewed this today94 members requested a free kit this week141 investors bookmarked this

Best Answer▲ 12 upvotes

james_wilson👑Elite (1m-5m)

Been there, done that, and honestly, mostly regretted it. I pulled about 15% out of my physical gold allocation a couple of years back to chase some tech gains, and while that played out okay short-term, seeing gold consistently hold its value through all this inflation nonsense has me rethinking everything. The tools and discussions on GIRAB actually helped me visualize the long-term impact of that decision way better than my previous broker ever did.

Comments (7)

kenneth_parker💎Premium (500k-1m)Real Investor✓ Verified•about 2 months ago

Totally get where you're coming from. I was in a similar boat a few years back, had about 12% of my portfolio in gold and felt like it was time to trim some back. Not quite $450k worth, but still a hefty chunk for my situation. Ended up rebalancing to about 7-8% and haven't regretted it. It felt good to diversify a bit more.

brian_edwards🌟Ultra (5m+)Real Investor✓ Verified•about 2 months ago

That's a pretty chunky allocation in gold, especially with the gains lately. When you say "rebalancing the gold down," are you looking at selling some outright, or maybe diversifying into other precious metals like silver or platinum within your IRA? Just curious about your strategy there.

timothy_reed💎Premium (500k-1m)Real Investor•about 2 months ago

Honestly, 15% in gold for a $3M portfolio doesn't strike me as "heavily weighted" if you're looking at it as a long-term hedge. Especially with the current economic uncertainties. I've seen far more aggressive allocations. If anything, this seems like a pretty sensible diversification, not necessarily something to panic-rebalance out of right now. Are you feeling skittish about the price movements, or just worried about overexposure?

catherine_bell🏆Advanced (250-500k)Real Investor•about 2 months ago

Hey, I hear you on considering a rebalance. 15% is a solid allocation, especially with that portfolio size. Before you make any moves, you might want to check out some of the IRS rules around precious metals in an IRA – particularly if any of that "shiny stuff" is held within a self-directed account. There are specific guidelines for storage and types of metals permitted, and knowing those ins and outs can help you strategize your next steps without any surprises.

Good luck with whatever you decide!

margaret_chen🏆Advanced (250-500k)Real Investor•about 2 months ago

Totally get where you're coming from. I've been feeling the same way lately. My gold allocation isn't as high as yours, probably around 8%, but I bought a lot of it when things were looking a bit more uncertain a couple of years ago. Now, with some of the headwinds easing up (at least temporarily!), I'm also considering trimming some of that position to reallocate elsewhere. It's tough to let go of a good hedge, but gotta be agile!

joshua_phillips🏆Advanced (250-500k)Real Investor✓ Verified•about 2 months ago

Honestly, I've been wrestling with that same thought for my own portfolio. I'm in Birmingham, holding around 400k in gold right now, and while the stability is nice, I keep looking at other sectors. What's been really helpful for me is using the historical gold-to-silver ratio chart from Kitco – it gives a fantastic visual on potential reversals or areas of undervaluation that might make rebalancing into silver more attractive than selling off precious metals entirely. Just helps put things in perspective when I'm feeling itchy.